Tax Strategies
Effective Date of Tangible Property Regs. Delayed
The IRS announced on Tuesday that it is delaying the effective date of the temporary regulations it issued in December 2011 governing whether tangible property expenses could be deducted or had to be capitalized (T.D. 9564), which were to apply to tax years beginning on or after Jan. 1, 2012. In Notice 2012-73, in response to numerous comments from taxpayers, the IRS said that it will amend the temporary regulations to make them apply to tax years beginning on or after Jan. 1, 2014, instead, but that taxpayers will be permitted to apply the temporary regulations for tax years beginning. Read More.
Tax Debate Expected in Wake of Budget Control Act
On August 2, 2011, President Obama signed into law the Budget Control Act of 2011. The new law provides immediate relief from the federal debt ceiling and makes more than $900 billion in spending cuts during the next 10 years, but does not any immediate changes to the Tax Code. However, the Act does outline expedited procedures for implementing another $1.5 trillion in deficit reductions, coupled with an additional increase in the debt ceiling of between $1.2 trillion and $1.5 trillion. To accomplish these future reductions, the Act created a bipartisan joint select committee on deficit reduction. The committee, which. Read More.
The Tax Implications of Partnership Debt to Equity Conversions
Partners with debt ties into their business may, at some time, wish to convert that debt to equity. By converting that debt, the partners alter the equation behind their tax basis. As CB&H’s Eric Pilcher describes in a recent issue of Inside Business , a debt to equity conversion could have unforeseen tax consequences. It is possible an existing partner’s debt conversion may not trigger any income tax consequences. If the converting partner was previously allocated all of the debt, rather than it being split among partners, the converting partner’s tax basis in its partnership interest would not change. Additionally, none of. Read More.
Standard Mileage Rates Increase Beginning July 1st
Effective from July 1, 2011 through December 31, 2011, the IRS has released new 2011 standard mileage rates for certain qualifying use of an automobile. Taxpayers driving a car, van, pickup or panel truck can use these rates to determine the deductible costs of that vehicle’s operation. 55.5 cents per mile for business miles driven 23.5 cents per mile as part of moving and medical expenses 14 cents per mile driven in service of charitable organizations Both the business and moving rates are up relative to last year from 51 and 19 cents, respectively. Taxpayers can use the actual cost of using the vehicle rather than the standard. Read More.
New Law Extends Tax Relief, Reinstates Estate & Gift Tax
Key Provisions of the Tax Relief Act of 2010 Incentives for Individuals Federal Estate & Gift Taxes Incentives for Businesses On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 , or H.R. 4853 (hereafter, “the Act”). The bipartisan legislation extends for two additional years many of the so-called “Bush-era tax cuts” originally enacted under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). Key provisions of the new law extend the individual and capital gains/dividend tax cuts for all taxpayers through 2012, enact a payroll tax cut for 2011, provide a two-year AMT patch, establish a top estate tax rate of 35 percent with an exclusion of $5. Read More.
CB&H’s Anita Pittman Featured on Atlanta’s Family Business Radio
Family Business Radio (FBR), hosted by Meredith Moore and Pat Romboletti, is an Altanta-based program providing a wide array of information and advice to family-owned businesses. On a recent episode, FBR spoke with CB&H’s Anita Pittman about planning and preparing for a new tax year. // Podcast: Play in new window | Download Topics included general planning tips, the interplay of a CPA with a family-owned business, the payroll tax holiday , equipment purchase deferrals , and deductions related to the HIRE Act . Click here to listen to the full podcast.